Neato Robotics, one of iRobot’s primary competitors in the robot vacuum space, has been shut down by its parent company, Vorwerk.
Neato Robotics was founded in 2005 by a trio of Stanford alums and rose quickly to become a major player in the industry, attracting a loyal fanbase with innovations like its introduction of Wi-Fi connectivity in 2011. However, Vorwerk has confirmed that the brand is being closed down due to underperformance.
The closure will impact nearly 100 Neato employees, while a significantly smaller team in Milan will remain on-board to support existing systems. Vorwerk says the move is part of a 2025 restructuring strategy, which will see it continue to focus on vacuums and other robotics at its German offices.
Despite the closure of Neato, the robot vacuum space continues to be a true success story, with the category being considered the first mainstream home robot. The technology has continued to improve, and the core product remains the same. While Neato was a major player in the space, the closure of the brand is not likely to significantly impact the industry as a whole, with many other companies still offering robot vacuums to consumers.